Time to read: 4 min
In response to rampant supply chain disruptions and rising customer demands, leaders are fortifying business foundations to improve manufacturing and supply chain visibility, customer satisfaction, and operational efficiency.
Fictiv, the leader in on-demand, high-quality digital manufacturing, announced today the release of its annual State of Manufacturing report. The findings reveal an industry in the midst of organizational transformation with leaders focused on building the foundations of more resilient, agile, and technology-enabled businesses. While time-to-market is never far from an executive’s mind, the data shows leaders are eager to gain the visibility, supply chain control, and workforce productivity needed as a speed enabler.
Key findings include:
- 59% of companies said improving supply chain visibility is their top priority
- 88% of manufacturing companies want to streamline production by using fewer suppliers
- 93% of companies are looking for technology solutions to increase operational efficiency for new product development, desiring improved collaboration between engineering and supply chain teams as 72% of respondents report engineers spend 10% or more of their time on procurement
- 97% of leaders are concerned about security with the rise of digital manufacturing
- 65% of U.S. manufacturing companies want to increase onshoring due to continued supply chain disruptions
- 97% of participants reporting customer demands are on the rise as there is more pressure than ever on new product development
“What stood out to me in this year’s report was the progress that has been made over the last three years,” said Fictiv CEO and co-founder Dave Evans. “2020 was about seeing the problems, 2021 was about finding the solutions, and now in 2022, we see companies are making progress towards a future-proofed industry. Leaders are demanding major changes from the ground up in order to gain much-needed control and predictability. Fictiv was founded due to the very issues companies are still facing today and I’m excited to see momentum toward technology-powered transformation.”
This marks Fictiv’s seventh annual report, conducted through Dimensional Research. The report surveyed 234 senior decision makers in supply chain, engineering, research and development, and technology or business leadership roles at companies that produce medical devices, robotics, automotive, aerospace, or consumer electronics. A number of themes emerged from the report:
- Technology-backed manufacturing is on the rise
- Over 90% of companies are using or implementing digital manufacturing technology
- Supply chain analytics and on-demand manufacturing platforms top the list of most popular solutions, used by 61% and 58% of companies, respectively
- Year-over-year, manufacturing leaders are facing fewer barriers to innovation overall
- As adoption of new digital manufacturing technologies increases, concern for potential security risks is high
- 88% of leaders prioritize working with SOC 2-certified suppliers
- Leaders are simplifying their supply chains
- Leaders want tighter integration with fewer suppliers, with a majority (55%) citing a focus on “better coordination with suppliers” in order to address rising customer demands
- 73% view outsourcing positively, with efficiency topping the list of advantages
- 48% report an increase in outsourced manufacturing as a result of the pandemic
- Visibility, security, and quality are cited as the main risks of outsourcing, highlighting an opportunity for digital manufacturing solutions to help close the gap
- Customer demands are increasing
- Improving customer satisfaction ranked No. 2 in the list of business priorities
- 97% say that customer demands are shifting, with improved sustainability, quality, and more advanced features topping the list of expectations
- To keep up with changing demands, product development workflows are evolving in a number of ways, including increased agility (49%), more efficient team coordination (48%) and faster integration of customer feedback (47%)
- Productivity is a key focus to maximize innovation
- Just as the latest U.S. Labor Department data shows the largest decline in worker productivity in 75 years, Fictiv’s report shows that a large percentage of engineering time is spent on administrative tasks
- Almost 75% say collaboration between engineering and supply chain teams needs improvement
- Year-over-year trends show continued emphasis on remote work
To download the full 2022 State of Manufacturing report, click here.
Fictiv operates a globally dispersed Digital Manufacturing Ecosystem that rapidly delivers custom mechanical parts on-demand. Its quality-driven ecosystem offers customers unprecedented manufacturing agility and speed through a digital quote-to-order platform, a highly vetted and managed global partner network, and a team of manufacturing experts that manage programs and inspect quality every step of the way. Different from traditional contract manufacturers, Fictiv’s operations are built around a digital core that leverages proprietary AI algorithms to deliver instant pricing, design for manufacturability feedback, and production transparency. Fictiv’s portfolio of optimized manufacturing services includes 3D printing, CNC machining, urethane casting, and injection molding with business solutions for new product development, engineer-to-order, and maintenance, repair, and operations. Over the last eight years, Fictiv has manufactured more than 19 million parts for early-stage companies and large enterprises alike, helping them innovate with agility and get products to market faster.